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Mad Money

News/Business. (2013)

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China 11, Jim 11, Masco 9, Apple 8, Cramer 8, Dell 6, Europe 6, Washington 5, Isaacson 5, Florida 4, Geico 4, Samsung 4, Us 3, America 3, Aflac 3, California 3, Wyoming 2, Starbucks 2, Google 2, Avon 2,
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  CNBC    Mad Money    News/Business.  (2013)  

    January 14, 2013
    11:00 - 12:00am EST  

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increase the chance of serious skin or allergic reactions or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may cause death. patients also taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers. do not take celebrex if you've had an asthma attack, hives, or other allergies to aspirin, nsaids or sulfonamides. get help right away if you have swelling of the face or throat, or trouble breathing. tell your doctor your medical history. and find an arthritis treatment for you. visit celebrex.com and ask your doctor about celebrex. for a body in motion. abecause what you don't know can abouhurt you.ce. what if you didn't know that boxes by the curb... make you a target for thieves? or that dog bites account for a third of all home liability claims? what if you didn't know that one in seven drivers is uninsured? and that grease fires have to be smothered? the more you know, the better you can plan for whats ahead. get smarter about your insurance.
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♪ we are farmers bum - pa - dum, bum - bum - bum - bum ♪ >> i'm jim cramer and welcome to my world. >> you need to get in the game. >> firms are going to go out of business and he's nuts! they're nuts! they know nothing. i always like to say there's a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. my job is not just to entertain. call me. 1-800-743-cnbc. what a difference a year makes. while the averages are ho-humming along, we have just the opposite of 2012. you may not see it on individual days but every weekend i go over the charts. what i saw this weekend, it dazzled.
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at this time last year all we heard about was staying local. exposures to overseas markets, we were the world's beacon, the safest place to invest. europe was imploding. china converged on a hard landing. china had no pulse. it seemed to be a hotbed of socialist insurrection. but us, we are the place to be. now it's the exact opposite. if a company's exposure overseas is moving up smartly. brazil. however, if a company is trapped in america, if its primary business is here, it trades horribly. [ buzzer ] what's going on? first we still have yet to see any real weakness to date that came full ahead of steam in 2012. a match made in heaven later.
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traditional retailers, they can't get out of their own way. the records to consumers trying to get more for their money, they have just collapsed. they are the worst performers of the year so far. department stores are not that much better. jcpenney leads a group that is behind the average. i don't think it's going to recover any time soon. i believe this underperformance can be explained by one simple cause. your paycheck. [ buzzer ] it's not as big as it was. the payroll tax holiday was allowed to expire. the fiscal cliff, this isn't a new tax. it's a return of an old tax but it's playing havoc with domestic stocks. so is all of the partisanship that makes our country seem like a mickey mouse place to invest and uncertainty going forward,
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every single democratic government on earth seems to be better organized and smoother functioning than ours. that uncertainty caused by that lack of confidence and higher payroll taxes might have something to do with the declines we're seeing. telco was a place to hide back in 2012. at&t and verizon saw slow downs. no let up in the subsidies to apple and samsung, we love these companies because they had no europe last year, no china, no mexico. now we wish they had all three and there was business formation. let's focus on the other half of the equation. it's a little more robust, where the money is going. last night china had one more remarkable session. holy cow, courtesy of new attitude. the gold double digit growth is taking up the fxi. follow along, but it is taking up the ancillary chinese plays, like coach. did you see that today? rallying more than $2.
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we are seeing steady gains in cummins. totalling chinese demand, truck demand. this one won't stop climbing. i say watch starbucks which is a gigantic expansion going on in china. i think it's going terrifically. and that stock is taking a hit because of disassociation with the people's republic, it's coming back strong. nike was hurt by inventory in china but that's becoming a thing of the past and buyers are piling in. the worst is over for certain at least in china. how about winn? nonetheless, steve wynn has put a lot of resources into macau, the vegas of china. things are getting better over there. i think wynn's a buy. then there's companies like
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boeing, which rallied despite terrible press. all of these companies that expanded rapidly around the globe and they have been roaring despite no research-oriented news that would make you feel all warm and fuzzy about the numbers. you can even consider dell part of this trend. yes, dell, the big service company that has been hurt by this rapid expansion at a time when no one trusted overseas markets. now dell might actually go private. ♪ hallelujah and it would make sense because half of dell's revenue comes from overseas. big companies with exposure to europe is doing terrifically. both have been kept back by worries. both ceos have said over and over, it's an issue. how about ford and general motors? have you seen these two? ford may have the best chart in
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the book. it's screaming. company doubled its dividend and getting european losses under control while china and latin america turned the corner. the darn stock has never looked back. shares in the open market to work its way out of its position, both ford and gm have been kept back by international headwinds and now there is tail winds. the most obvious difference between 2012 and 2013 is the banks. huge increase in the finances and no exposure to europe. now it's santander, the huge spanish bank, of all places. it's been on a roll. spain may not ask for a bailout. get this. jpmorgan just this morning put royal bank of scotland on its buy list. i thought those guys were turning by now. oh, and let's just make it clear that while apple, big international player is certainly beneficiary of this --
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it should be, right? it just happens to be stuck in its own maelstrom. and i'm going to spend a ton of time on that if you stay tuned. one of the things i found to be the case over the years is that january sets a trend when it comes to sector gains. we saw domestic stocks rally from the get-go and stumble from january on. this year i think that's reversed. a combination of higher taxes plus the general disarray in washington has driven money toward the exact sectors we fled from last year. the companies that moved so aggressively overseas stopped being dragged down by our sluggish economy. the move is in its infancy. they were left for dead in 2012 and are roaring back to life. i think they will gain steam as the wrangling in washington goes on for the rest of the year and beyond. fred in ohio, fred? >> caller: yes, jim. boo-yah. this is fred from ohio. it's a pleasure to talk to you. >> we loved ohio when we went
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out there last year to see massillon play some other ohio team. we were in that town. >> caller: i've been watching you from day one. >> thank you. >> caller: i want to know what do you expect from pepsi on the first quarter earnings and china and the association with burger king and marketing. what do you think of the first quarter earnings? >> i think the ceo is going to deliver a really, really good quarter. i think that stock -- its emphasis on emerging markets, it's going to do a great job. i would own pepsico going into the quarter. dino in california, dino? >> caller: jimmy. >> yo-yo. >> caller: happy new year. >> happy new year. >> caller: by the way, i hope you shorted the mayans. >> oh, yeah. absolutely. >> caller: real quick buddy, in light of what happened with ups and tnt, i was wondering which one you would buy? >> well, since the world did not end, federal express is a stock
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owned by my charitable trust. it's had quite a run. i'm going to tell you something i usually don't say, i like them both. i think they are both good. i think they are both exactly alike but i want to have a chit in that international forwarding business. david in florida? david? >> caller: hey, jim. thank you for taking my call. >> my pleasure. >> caller: as a walgreens employee that's only 22, is it a good time to keep buying shares because of the increased foot traffic in regards to the flu shots? and should it be considered -- should i be concerned that some executives are selling shares? >> i think walgreens is terrific. i will say a better bet is cvs, which is charlie victor sam, reported a terrific quarter by preannouncing. that is a safer bet. new year, new ideas. what worked last year may not necessarily work this year. washington shenanigans continue.
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focus on foreign-oriented stocks. those are the ones that are coming back to life. be right back. >> announcer: coming up, locking in profit? the housing market has been heating up. cramer's been hunting for stocks. tonight, he spotted some household brands with takeover potential. find out if it's a housing play worth moving into. and later, mac daddy no more? 2013 has been a tough year for apple. will it turn around to regain its throne as the stoke to own? don't miss cramer's take. plus, win with wireless? there's a spat of new stocks on the street, and many more coming in 2013. from cutting edge next generation wi-fi to cruise lines. has your ship finally come in? or will there be a disconnect? cramer's breaking down what it takes for these stocks to tick
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up, just ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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♪ right now we are in a merger moment. it's dawning on management teams all over america that if they really want to create value and send their stocks higher, the best way to do that in this environment may be simply to buy another company. hence, the huge spike in m and a activity in the fourth quarter. i think it's big. this trend continues in 2013, if you ask me. but i don't want just to see more deals. i want them to be the right deals. buy, buy, buy. so for all of the lonely is ceos
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who i'm sure are sitting on the rooftops singing. ♪ matchmaker make me a match ♪ find me a match make me a perfect match so you can sing, yes i am a rich man to a very plaintive tune. the hottest theme out there, a steaming hot thing, housing. these two combined, business will be an absolute powerhouse. i'm talking about masco and fortune brands home and security. two makers of cabinets, plumbing fixtures and other housing-related products. masco is the largest non commodity supplier to home depot and i should point out that any deal to acquire fortune brands
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would have to be done later in the year because of arcane tax laws. that's the caveat. still, the timing. we are now witnessing a fabulous housing rebound, something i've been talking about a lot lately because of it's incredible staying power. we're not going back to the days of the housing bubble. but new household formation exploded in 2012, to a million new households and there is still pent up demand for homes that can give us multiple years of upside. now housing starts are on the rise in a big way. take a look at this chart. look how far we can go, for heaven's sake. housing starts going back to 1989. see the huge uptick in 2004? i wouldn't be proposing this marriage if 2013 wouldn't be better. we're right at the beginning of
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a cycle that masco and fortune brands benefit from in a major way. you need paint and insulation, masco makes that. you need doors and windows and locks. the same is true if you want to sell your old home. the easiest way to fix it up is to remodel with new installations. with housing prices rising across the country, now is the perfect time to come together. 2013, this is my proposal. of course, i think the stocks will do well without a deal. if we get a mergere, the sky's a limit. why does it make sense to merge? first of all, both companies have already restructured during the recession. if they merge, they will be able to cut a huge amount of costs by eliminating duplicating systems. distribution network, saving a boatload of money.
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lowe's and home depot and cabinets and plumbing fixtures. right now home depot and lowe's make up 20% of fortune's sales. now, with the merger, these companies would be able to change the tug-of-war. they'd be able to negotiate better pricing and get their hands on better shelf space. it would allow the combined company to get larger discounts on imported merchandise like lumber. merging with fortune brands would fix that right up, create instant cabinet dominance. the deal would be good for the new company's margins. fortune brands home and security has higher gross margins than masco. it would be great for masco. fifth, buying forth demands would give exposure to europe. the entire rest of the world accounts for 17% of the sales. this is a 2013 issue. i don't want to sweat europe for too long. i suspect it will be back to
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growth world. speaking of international, fortune's acquisition will give masco access to china. fortune home and security has been in china for 15 years. even as it only represents less than 5% of the company's sales. one of the fastest growing companies in five years. last but not least, it would create a tremendous house of brands all under one roof. fortune brings moen, master locks, delta faucets, to name a couple of recognizable brands. the new company could put together a tiered good, better and best strategy so the customer knows the quality of what they are getting. i recommended these stocks about a year ago. that was back in january 2012. since then, fortune has rallied.
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the housing recovery is only just beginning. i think they have much more room to run. the point i'm trying to make, they can run a lot better together. the bottom line, the housing market is rapidly on the mend. this is the perfect time for masco to get together with fortune brands home and security. if you owned either one, you would, too. let's go to marie in illinois. marie? >> caller: hey, hi. i've got a big beefy boo-yah to you. >> i'll take that. what's up? >> caller: i read getting back to even and if i could have dinner with you or george clooney, it would be you in a mad minute. >> really? george clooney. >> caller: yeah, you're my hero. >> but not bradley cooper? >> caller: no. >> okay. >> my question is, is it too late to buy weyerhaueser?
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how does it compare to plum creek? >> you get the product. she and i were talking, does wy go down when it reports? it's entirely possible. wy, i like it too much to tell you not to be in it. but if it comes off, goes down, you get the e-mail of action alerts before we do it, you get it first. seth in arizona, seth? >> caller: boo-yah from the sonoran desert where it's really cold. >> it's like 90 degrees here. it's really odd. go ahead. >> caller: i was wondering about perini. >> oh, boy. you know, this group has gotten so hot. i was watching floor after they did a bad quarter and this stock was up and i was with somebody from perini this weekend. it's a good stock.
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i'm a buyer. now, i want to thank maria. such a nice -- george clooney and i, what's six or half dozen. the housing market is beginning a rebound. that means plenty of room for fortune brands and masco. separate they are good. by year end if they could get together, they would be fantastic. after the break i'll try to make you even more money. >> announcer: mac daddy no more? 2013 has been tough for apple. will it turn around to regain its throne as the stock to own? don't miss cramer's take.
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people keep asking me, jim, are you backing away from apple? to me that's the wrong question. a better one is, is apple backing away from being apple? today the stock stumbled nearly 19 points, involves apple parts for apple iphones. if demand shortfall for the iphone 5, is the demand below what apple thought? does that mean the company will announce a shortfall? will the company be coy, be forthcoming, convincing about its outlook? i don't know. it's anything but reassuring. let's step away from the parts issue and talk about something bigger and more ominous. the new products coupled with existing products not being special enough to charge premium for.
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i want to ask if apple is a fundamentally changed company. that has every reason to be arrogant because of superiority and not good enough to justify that arrogance. given that it fell again today, let's go back to the fundamental questions. is apple backing away from being apple. consider the last year that steve jobs passed, iphone 5 has been the subject and subsequently found out that the company took out one of the previous phone's treasures, the google maps app. that turned out to be not ready for primetime. make matters worse, it came with a new plug. you only needed one plug for the apple ecosystem. suddenly you needed a new one. the ecosystem took a hit and it's part of what makes apple so
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perfect and unique. next we've got an apple ipad mini. i love it. useful product, fits better in a pocketbook or knapsack. however, not something so dramatic to raise eyebrows. andrew grove, the former ceo of intel calls it a 10x product, a breakthrough because of the disruptive technology. you can argue that apple made a courageous move. somebody few companies are willing to do. however, ipad mini reminded me of water isaacson, author of steve jobs' autobiography, isaacson talked about how there may not be anything huge on the drawing board, nothing that was omg and he said it noting that he had waited for a year to go buy since jobs died. something he promised. oh, take a look. unremarkable. i asked isaacson whether apple
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didn't have a breakthrough television product. i wanted to hear something positive, a clicker telling you to put on the nfl this weekend or sons of anarchy. he said apple may have such a product but some of these essential to whether the product gets off the ground. isaacson said apple was able to put together the music business when he put together itunes but the cable companies are too powerful. desperate the way that the record companies were. not long after i took the apple position that had been held for a very long time and told subscribers that actionalerts.com tells you what i'm about to do beforehand, it was time to ring the register on half the position. going forward, as has always been the case, viewers and readers know, i wanted to play with the house's money.
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now, i've been trying to get my arms around apple the stock. it began a valuation play. there's better growth than they do. the problem with that is apple has been very cheap for a while, particularly if you back out the cash and just because it yields 2% doesn't mean it's a screaming buy. that's because we don't care about cheap earnings. apple has been losing share to others, notably samsung in the smartphone business. apple does support a market cap, talking about having a large numbers law against you. then two things happened this weekend that crystallized my concern about this company that i think is perfect and loved so much, all in a 24-hour period. my eldest daughter texted me to ask me if i knew anyone at apple because she hated the new version of i tunes. i said i didn't like it either. she texted back that none of her friends like it. she said it stinks. then i went to the verizon store
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and my tech guy who knows how much i like apple said apple is going down the wrong path, charging more for a product that is not superior to samsung's phone with google software, of course, and that in many ways the samsung phone was superior. i was stunned. so that night when i saw my daughter for dinner i mentioned this interchange and unleashed a barrage of anti-apple invective, everything from how they can care less about anyone that owned old products he a different colors because they were the virtual fashion accessories. then i stuck with it as they graduated from macs to the iphone 4s but both kids pointedly did not want any apple products for the holidays and both said they are just fed up with the company. now i looked at the timeline from the moment steve jobs died and then it was just another
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stock but rallied 200 points and i think because it was hot and a lot of people didn't know because the chart was great and then i listened to isaacson and the fact of the omg factor and i love my google maps so much and i didn't like the plug which led to cutting the position for my trust in half. here's the bottom line, even as i see apple come down to what i can't see a reason to buy the stock that i sold and days like today, i wish i didn't own any. of course, these can turn around on a dime and my trust holds on betting that apple can still dazzle, maybe something that's been developed since jobs died. get the mojo back. until then, the price of the goods, too high and the customer may be gone. all in all, it's a tough hold. tough hold. and alas, a shame. don't move. lightning round is coming up.
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si" music: "make someone happy" ♪it's so important to make someone happy.♪ ♪it's so important to make someone happy.♪ ♪make just one someone happy ♪and you will be happy too. ...so as you can see, geico's customer satisfaction is at 97%. mmmm tasty. and cut! very good.
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people are always asking me how we make these geico adverts. so we're taking you behind the scenes. this coffee cup, for example, is computer animated. it's not real. geico's customer satisfaction is quite real though. this computer-animated coffee tastes dreadful. geico. 15 minutes could save you 15 % or more on car insurance. someone get me a latte will ya, please? sven gets great rewardsd for his small business! how does this thing work? oh, i like it! [ garth ] sven's small business earns 2% cash back on every purchase, every day! woo-hoo!!! so that's ten security gators, right? put them on my spark card! why settle for less? testing hot tar... great businesses deserve great rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? here's your invoice. office superstore ink retailer in america. now get $6 back in staples rewards
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for every ink cartridge you recycle when you spend $50 on hp ink. staples. that was easy.
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it is time. it's time for the lightning round. sell, sell, sell. are you ready? time for the lightning round. velizar from washington. >> caller: how are you? >> very good. >> caller: hey. had a question. limited brands. >> oversold. i think it's a buy. let's go to john in florida. john? >> caller: hi, jim. it's john kay in dunedin, florida.
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jim, i bought investment group. >> got to be careful because we don't really know what fortress owns. kkr. let's go to joe in michigan. joe? >> caller: boo-yah, jim. >> beautiful. >> trinity industries. am i right about the stock or should i just let it go? >> making railway cars including oil tankers. let's go to bill in oklahoma. bill? >> caller: boo-yah, jimmy. >> boo-yah. what's up? >> caller: got ahc, 37 and change. are they going to keep running in the mid-40s? >> i like it here. how low oil prices are here in this country versus getting it from brent. let's go to jeff in nebraska. >> caller: boo-yah, jim. >> boo-yah. >> caller: i got a question on ironwood pharmaceuticals. just hit a 52-week high. >> i don't know currently what's going on with ironwood.
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i will have to pass on that one. let's go to marvin in california. >> caller: boo-yah from san diego, california. >> nice. what's up? >> caller: jim, i'm currently liquidating some assets and i'm turning my portfolio into gmc. >> i like gnc very much. it's doing really well. i want to own that stock. let's go to dave in florida. dave? >> caller: how are you? >> real good. how are you? >> caller: good. jim, i have a stock, bios. and i've been looking at this and wondering, are they a one-trick pony? >> no. no. no. i think you're okay. i think you should stick with that stock. let's go to trent in wyoming. trent? >> caller: how's it going, jim? >> all right. what's going on? >> caller: big boo-yah from the great state of wyoming, man. >> thank you. >> caller: i want to know about
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resolute energy. what do you think about that? >> i've been looking at a lot of these different oil and gas companies and i believe that oil may still be shaded down, which is why i favor stocks with yield in this sector and that one doesn't have it. you need yield to be in oil and gas. that's why i like things like conoco. let's go to michael in pennsylvania. >> caller: boo-yah. >> boo-yah. >> caller: nycb, please. >> this company had an outsize yield that looked like it was going to be a red flag but now i'm keeping the red flag in my sock because i think that we are in a position where the regional banks are doing just fine and i like it. i need to go with billy in missouri. billy? >> caller: boo-yah, jim, from the home of the once again playing hockey st. louis blues. >> nice. >> caller: i actually am calling
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about public storage. psa. >> i like that. that's a real estate investment trust. baby boomers retire. people, you know, i'm looking for storage, going into a shrinking house situation, downsizing. craig in washington, craig? >> caller: jim, boo-yah. >> boo-yah. >> caller: hey, i love you brother. >> what's shaking? >> caller: mmr holdings. >> interesting, because all of those stocks are moving up from japan. i'm not going to fight that. i've been buying ewj, that means i think it represents japan. that's where i prefer you to be. that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: coming up, win with wireless? there's a spat of new stocks on the street and many more coming in 2013 from cutting edge next generation wi-fi to cruise lines. has your ship finally come in? or will there be a disconnect?
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cramer's breaking down what it takes for these stocks to tick up just ahead. taking control of your financial destiny is smart. but why would you go it alone? >> something that has a much larger bearing on you and the stock market. >> announcer: let cramer be your guide, your sounding board. >> i'm having a hard time with my favorite stock. >> announcer: and your coach on the road to financial independence. "mad money" weeknights on cnbc. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
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[ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or turn 30-million artifacts... ♪ into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it.
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[ male announcer ] alka-seltzer plus presents the cold truth. i have a cold, and i took nyquil, but i'm still "stubbed" up. [ male announcer ] truth is, nyquil doesn't unstuff your nose. what? [ male announcer ] it doesn't have a decongestant. no way. [ male announcer ] sorry. alka-seltzer plus fights your worst cold symptoms plus has a fast acting decongestant to relieve your stuffy nose. [ sighs ] thanks! [ male announcer ] you're welcome. that's the cold truth! [ male announcer ] alka-seltzer plus. ♪ oh what a relief it is! ♪ [ male announcer ] to learn more about the cold truth and save $1 visit alka-seltzer on facebook. with multiple lacerations to the wing and a fractured beak. surgery was successful, but he will be in a cast until it is fully healed, possibly several months. so, if the duck isn't able to work, how will he pay for his living expenses? aflac. like his rent and car payments? aflac. what about gas and groceries? aflac. cell phone? aflac, but i doubt he'll be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a get-well card at getwellduck.com.
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last year we had a ton of terrific ipos. which will mean when these companies came public they gave you a huge first day pop on the first day of trading and i think that trend is going to continue for 2013. now we have all of these newly minted public companies coming down. what the heck are we supposed to do with them? in other words, how do you
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profit from a fresh-faced ipo after the actual deal has already come and gone? first of all, forget the stocks that roared on their first day of trading. we have studied these names and we know that many of them will be due for big pullbacks. beyond that, these stocks are already discovered, right? they have already grabbed the market's attention. the easy money has already been made. >> we want to focus on ipos that literally went bust. listen to me on this. names that lost money, lost people money on the first day of trading. you're not going to believe what i'm about to tell you. these stocks tend to get written off by the market. they do not get the benefit of the doubt from anybody. so when you see a stock that traded horribly on day one, and then it manages to just rally like crazy over the ensuing weeks and months, well then you know you've got something really special. that's why i want to introduce
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you tonight to ruckus wireless. you know how kids are always causing a ruckus? it's rkus. ruckus came public not with a bang but with a whimper after everybody freaked out about the fiscal cliff. it dropped like a rock to $12.25 on the first day of trading. it was, without a doubt, one of the most hideous sights i had ever seen. it's just a total flop, like a really miserable broadway show that closes a few days after it opened. since then, though, people are taking notice of the fact that
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ruckus is running away from the competition like you've seen bolt in the olympics. and now the stock is running, too. running like crazy. it cannot be ignored. ruckus trades at $21.71. up 44% from where its ipo priced. up 77% from the low where it went out on the first day of trading. the stock is steaming hot. so hot i wish i brought it to your attention earlier this year. how is ruckus causing such a ruckus? this company has managed to go a long way toward solving the biggest and longest standing problems. these days, everybody uses wi-fi. you probably have a wi-fi network at home. i do. another at your office. everybody offers free wi-fi, including starbucks. but wi-fi has a fatal flaw. it's vulnerable to interference. that means any devices that use
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those same parts of the spectrum can mess up your connection. cordless phones, microwaves or alarm systems. not to mention neighboring signals. hey, that's me, from different networks. you probably had this experience at home where you were casually surfing the web. using a cordless phone. suddenly the internet goes dead or slows down dramatically. that's interference. it's worse that pass interference called against your favorite team. this problem has been around since wi-fi was first invented and very little has been done to prevent it. this company is adapting to the environment in realtime in order to avoid interference and give you the strongest signal possible. ruckus avoids interference and this makes their wi-fi gateways
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and access points ideal for dense environments like cities or college campuses and because the product is superior, businesses that use ruckus' hardware need to buy fewer wi-fi access points because it covers more area. the overall wi-fi equipment market is expected to grow from $3.4 billion to $8.4 billion in 2016. compound growth, 20% annually. but ruckus is taking share in that market. i believe they would do much better than the average wi-fi planner. getting two-thirds from the wireless networking business, 4% market share. that could go up. the company has ton of success in the schools. universities love to wire themselves up with wi-fi and ruckus gets a third of its enterprise revenues from hotels. they can make their guests pay through the nose for it, right? a third comes from the service provider wi-fi market where internet providers are providing their own wi-fi to their enterprise customers. they are handling the rapid increase in wireless data,
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something that could be a major business going forward. ruckus is taking share because it's got better products. you know what, this is what is called a disruptive technology. we're going to interview disruptive technologies in 2013 on the show. six times sales, sales. 126 times this years earnings estimates, which is sky high, even considering the company's long-term 28% growth rate. i think the technology is incredible. my view is you've got to wait until it's safe to buy the stock. here's the bottom line. it may have had a lackluster ipo, this company has made the first great leap forward in wi-fi in ages. i say put ruckus on your buying list. more importantly, let's pay attention to the loser ipos that might be developing this week. not just the winners. it could be another ruckus. those are the ones we can get shares of in the after market.
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they represent the real steals, not the ones that open up 50%. they would not give you any shares of these red hot deals to begin with. "mad money" is back after the break.
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didn't research in motion tell us that things aren't that hot there? didn't they just guide down severely? isn't that why it fell from $14
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and change, making a mockery of all of those that said it had bottomed. here it is above that vicious selloff level. courtesy of the radical decline in computer sales, acquisition of the overvalued autonomy and the slow down in printer sales? how could that stock be up 92% for the year? didn't best buy report a bummer, reducing cash flow and no hope of dropping the best browse, the place to look at equipment for amazon? how come the disappointment? dealing with avon, one step away from disaster, how come that is going to move up? trading above 15. these are good questions that need to be answered one way or the other. they've got to solve the conundrum of these moves. we could easily write these off as froth, where the market gravitates from the first to the worst.
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worst. given that we've seen this kind of behavior before means that unseasoned bargain hunters are not taking shots at these companies and vastly oversold. take hewlett-packard. even as it has a new arguably better ceo and improved balance sheet, you can see how someone might have wanted to take a loss in the name knocking it down or any of the others to offset capital gains to take anticipation and solve the fiscal cliff. the artificial selling pressure is now abated or there's a possibility of a major turn at hand. a phone coming out, maybe r.i.m.m. can gain some share with the blackberry 10? the research from wall street has said that it hasn't. maybe that's just hope springs eternal. for hewlett-packard we're hearing that the worst is over and it dramatically increases the current price.
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maybe a sale division, wholesale breakup, cash flow may not be greatest and potential takeover may be off the table but they did a better same-store sales. avon, new leadership may be fixing the company and finally there's that dell factor. ♪ hallelujah suddenly speculated on when goldman sachs went from sell to buy in one day. we don't have any hard data that explains the terms. that means that they are susceptible to giving up these recent gains. sell, sell, sell. i think at this point you've got to stay sidelined. the moves for research in motion and hewlett-packard aren't too great. however, the days when these were all good shorts, those days are over. they are better buys. including best buy at 13, might be undervalued. stick with cramer.
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